Bank of Americasaid Tuesday it plans to stop offering some riskier mortgage loans after it finishes buying Countrywide Financial, the largest U.S. mortgage lender.
The second-largest U.S. bank said the combined businesses will not offer "option" adjustable-rate mortgages, which let borrowers pay less than the interest due.
It also plans to "significantly curtail" other non-traditional mortgages, including some loans that don't require borrowers to fully document income or assets.
Bank of America shares were recently trading lower, hurt as several analysts lowered price targets for the company's stock price and its earnings estimates. The revisions followed Bank of America's first-quarter earnings report on Monday.